Taylor Wimpey Share Discussion Threads

[fewdollarsmore] 06/7/2011 12:11

Is it good Jibba as it sure doesn't feel like it judging by the share price reaction?!

[jibba_jabba] 06/7/2011 08:36

Halifax HPI Actual 1.2% Forcast 0.1% Previous 0.4%

[sir rational] 05/7/2011 18:07

Housebuilders boosted as sales jump
By Mark Wembridge
Cautious optimism for a recovery in the housebuilding sector was fuelled on Tuesday when three UK construction companies reported signs of an upturn.

Persimmon, the UK's largest housebuilder by volume, said private sales reservations had risen by 6 per cent year-on-year over the past 10 weeks, sparking hopes of a recovery in the second half.

However, such optimistic sentiment came in spite of the number of legally completed homes in Persimmon's first half falling to 4,439 from 4,657 in the same period last year.

Furthermore, Persimmon's average selling price during the six months to June 30 was £162,000, compared with £168,936 the previous year, as buyers opted for smaller homes.

This in turn dragged down revenue from £776.6m to about £715m at the group, which was hurt by this winter's heavy snowfall and Arctic weather, although margins rose by 1 percentage point to 9 per cent.

"Our order book is now ahead of the same point last year, with forward sales at about £725m. This places us in a strong position for the second half," Persimmon said.

The cheery outlook was echoed by Galliford Try, which said total housing completions for the first half rose by 27 per cent to 2,170 units, and the average selling price for private sales jumped 10 per cent to £227,000.

But as with Persimmon, not all the news was positive, with the average selling price of Galliford Try's affordable homes – which include units that are part of social housing schemes – slipping from £124,000 to £106,000.

"Our financial strength and the spread of our activities mean that, subject to the economic uncertainties affecting our markets, we enter the new financial year with confidence," said Greg Fitzgerald, Galliford Try chief executive.

Construction group Morgan Sindall, on the other hand, was slightly less glowing in its assessment of the second half, noting: "The slight improvement in market conditions for open market housing continues despite sales remaining constrained by the lack of available mortgage finance."

Housebuilders have attempted to overcome tight mortgage constraints, which include relatively high deposit requirements, by offering alternative financing options for first time buyers.

Last week housebuilder Taylor Wimpey also blamed a dearth of mortgage finance for a dip in buyer sentiment, which dragged down first half completions from 4,804 to 4,550.

Taylor Wimpey has secured funding to help more than 1,200 first-time buyers through the government's FirstBuy scheme. Persimmon also expects to benefit from the FirstBuy programme, and has secured £35m in government funding – the largest allocation among housebuilders – to help 2,100 first-time buyers get on the housing ladder.

Under the scheme, which only applies to newly built properties, buyers can take out a mortgage for just 75 per cent of the cost of the property, provided that they can produce a 5 per cent deposit. The remaining amount is provided through a loan, which is fee-free for the first five years.

The scheme has £210m allocated to help more than 10,000 first-time buyers, but has been criticised for being merely a subsidy for the sector.

Persimmon shares fell 3.9p to 487.8p, Galliford Try fell 12 ½p to 517½p, whilst Morgan Sindall rose 18p to 659p.

[sir rational] 05/7/2011 14:29

Thought that was wrong - Oriel have 59p target

[slytherin] 05/7/2011 14:25

Maybe the company currently breaches institutional investors' gearing guidelines, so the TM sale really is important to drive the price up.

Market cap's currently £1.2bn, that means (with 25% corporation tax) it needs pre-tax profit of £160m pa on a P/E of 10. Concensus forecast for 2011 is £88m pre-tax (and pre-exceptionals). So clearly quite a bit to prove on the earnings front, especially as the disposal is earnings dilutive. Net asset value of 59p per share helps though.

[sir rational] 05/7/2011 13:42

Oriel had 40.62p a couple of months ago so that's a downgrade of sorts

[sir rational] 05/7/2011 13:37

Did Oriel really say 38p?

[gbh2] 05/7/2011 12:52

Snag with that is very few PIs can play that game due to dealing costs, so its only the Funds that make money out of small volume trading.

[sir rational] 05/7/2011 12:29

Works both ways - up & down

[gbh2] 05/7/2011 12:15

i,rational - The institutions are playing the share price with trades of very little value, if a consolidation took place it would cost them more and they may think twice before shorting, if you don't realise this then maybe you should take up knitting :)

[pilly11] 05/7/2011 11:54

once the sale of TM is officially announced are we expecting a rise in SP?

[sir rational] 05/7/2011 11:39

I see Kate Barker bought another 10,000 shares

[sir rational] 05/7/2011 10:24

Galliford Try flags in-line full year as house sales firm up
9:31 am by Kam Patel

Galliford Try, (LON:GFRD) put out an upbeat update saying its full year results will be in line with expectations and that it is confident about prospects. Following an improvement in the housing market early in 2011, house sales levels have remained firm and prices stable, it added.

The housebuilding and construction group said housing completions for the year to 30 June increased 27% to 2,170.

Average private house sales over the year rose 10% to £227,000 compared to the 2010 year. Its landbank has been increased by 7% to 10,250 plots.

The company experienced house buyer cancellation levels of 19%, close to the historical average. The requirement for sales incentives, meanwhile, reduced significantly during the second half, particularly in the south east of England where it southern biased business is strong. That all amounts further evidence of a firming of the market.

As for the group's construction arm, the company notes it put in a "resilient performance in difficult markets" with the order book broadly flat at £1.75 billion.

Major construction contract awards secured over the year include the £790 million Forth Road Crossing; a £200 million United Utilities treatment works; and a £50 million Petrofac plant.

The group's net cash position of over £30 million at end of the year was ahead of target and compares to £75 million last time.

Greg Fitzgerald, chief executive of Galliford Try, said that two years into the company's housebuilding expansion plan, Galliford Try is on target to meet its objectives.

He added: "Our financial strength and the spread of our activities mean that, subject to the economic uncertainties affecting our markets, we enter the new financial year with confidence."
.

[127tolmers] 05/7/2011 10:16

Good results from both Persimmon and Galliford Try today

[edsthebusiness] 05/7/2011 09:47

Sir Rational - 5 Jul'11 - 09:45 - 8938 of 8940


Can't see that consolidation would help much

===

Of course a consolidation would help

[sir rational] 05/7/2011 09:47

5 July 2011 Last updated at 09:04 Persimmon expects house prices to rise

Persimmon said house prices would remain stable this year
Housebuilder Persimmon has said it sold fewer houses in the first half of this year compared with same period in 2010, but expects the housing market to pick up over the rest of the year.

It also said that its average selling price in the period fell slightly, but that again it expected prices to rise over the full year.

Improvement in mortgage lending was the key to building more homes, it said.

It added that it continued to see a "modest improvement" in lending.

Prices 'firm'

The housebuilder said it had sold 4,439 homes in the first six months of the year, compared with 4,657 a year earlier.

However, it said sales were starting to improve and it expected to sell a similar number of homes this year as last.

Underlying prices "remained firm" for the year so far, the firm said. The average selling price was £162,000 against £168,936 in the first six months of last year, but this reflected a greater proportion of smaller houses being sold.

"We anticipate that our average selling price for the full year will increase as we legally complete more detached house sales," it said.

Last year, Persimmon made a pre-tax profit of £153.9m, almost double the £77.9m the company made in 2009. Revenues grew 10.5% to £1.57bn.

The average house sale price rose by 4% to £172, 475.

Last week, Nationwide said house prices in the UK had "moved sideways" in the past six months, and recent figures have suggested that mortgage lending remains subdued.

[sir rational] 05/7/2011 09:45

Can't see that consolidation would help much.

But £100m buyback plan & cancellation surely would.

[gbh2] 05/7/2011 09:12

This is becoming the most useless holding I currently have, its going nowhere fast and imo its mainly due to the number of shares that are in issue, they NEED to consolidate!!!

[edsthebusiness] 04/7/2011 15:03

04 Jul Taylor Wimpey PLC TW. RBS Buy 38.42 44.00 43.00 Retains

[eddyt27] 04/7/2011 13:21

Any thoughts on when TW will start paying a dividend

[sir rational] 04/7/2011 09:11

Deutsche Bank Raises Taylor Wimpey Price Target 1012 GMT [Dow Jones] Deutsche Bank raises its Taylor Wimpey (TW.LN) price target to 54p from 50p following Thursday's trading update. Says the report is in line with expectations, noting in particular that management is confident it can achieve double-digit Ebit margins in the U.K. by 2012. As a result, increases pretax profit forecasts by 7%-8% for both 2011 and 2012. Sees value and thinks the market may be more willing to revisit Taylor Wimpey should it convince on the benefit of its strategic land portfolio in its September analyst meeting. Keeps at buy. Shares trade 0.9% higher at 38p.